MAS records net loss of S$10.9b for year ended March 2011
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By Rachel Kelly | Posted: 21 July 2011 1220 hrs
SINGAPORE: The Monetary Authority of Singapore (MAS) has recorded its biggest loss in 40 years on the back of a strong Singapore dollar.
MAS has recorded a net loss of S$10.9 billion for its fiscal year ended March 2011. This compared to a record net profit of S$10 billion posted last year.
The central bank said excluding exchange rate effects, it achieved income and net capital gains totalling S$12.3 billion during the financial year ended March 2011.
MAS disclosed these figures in its latest annual report released Thursday.
The loss comes as the foreign exchange impact from the stronger Singapore dollar exceeded the interest, dividend and valuation gains on foreign assets held.
Most of MAS's assets comprise official foreign reserves.
These are invested in a diversified range of foreign currency assets.
During the year, the Singapore dollar appreciated against most currencies including the US dollar, Euro and Sterling Pound, but weakened against the Yen.
The total assets of the central bank, including the Currency Fund, grew by S$13.85 billion to S$299.75 billion in the financial year ended 31 March 2011.
In 2010, MAS tightened its monetary policy as the economy strengthened. It shifted to a modest and gradual appreciation of the exchange rate policy band in April 2010.
Further tightening was undertaken in October 2010 and April 2011 as growth became more entrenched and resource constraints more binding.
MAS said the tighter monetary policy stance will ensure price stability over the medium term and keep growth on a sustainable path.
In the chairman's message of the annual report, Deputy Prime Minister Tharman Shanmugaratnam said that "the ongoing sovereign debt crisis in the European periphery poses significant risks - both to global economic growth and financial stability."
Mr Shanmugaratnam added that Singapore faces a changed financial landscape globally following the crisis of 2008-2009, and that the regulatory approach in Singapore will "evolve, whilst retaining the close monitoring and supervision of financial institutions that ensures that our financial system remains resilient and stable."
In the capital markets MAS implemented several safeguards for investors such as guidelines on the form and content of the Product Highlights Sheet.
MAS said it will also implement changes to fund management regulation, aimed at raising the quality of players and enhancing regulatory oversight to enable sustained growth of the industry.
Going forward Mr Shanmugaratnam said MAS will continue to support the development of Singapore as an international financial centre "trusted for its high standards of regulation, integrity and efficiency."
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Murdoch will be surprised to know that giving too much money to these fat cats only make them count their own money, they hack care whether you make or break.
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